In this week’s roundup of news from the Asia/Pacific region: Insight into Chinese travelers; dispatches from HotelsWorld; STR pipeline and performance data; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
US hoteliers, pay attention to Chinese shopping trends
Lee McCabe, VP of North America for China’s e-commerce platform Alibaba Group spoke about Chinese travel and spending behavior at the Revenue Strategy Summit, writes HNN’s Stephanie Ricca, explaining how U.S. hoteliers can take advantage of those trends.
“Companies are better understanding China and it’s getting much easier to work with China,” McCabe said. “If you’re doing business in the U.S., you have to be thinking about doing business in China because the opportunities are there now.”
HotelsWorld Day Two: Issues include M&A, authenticity
Panelists for the “The Urge to Merge” session at the 2017 HotelsWorld conference in Sydney thought M&A activity will continue on at its current pace, writes HNN’s Jeff Higley.
“Given the trends toward consolidation and the limited amount of opportunities, I think (consolidation during the next 12 months) will be about the same (as it was during the previous 12 months),” said Rachel Argaman, CEO of TFE Hotels.
HotelsWorld Day One: Driving experience amid change
Attendees during the first day of the HotelsWorld conference heard a great deal about disruption and design, writes HNN’s Jeff Higley. Panelists spoke about guests’ interest in serviced apartments, shared accommodations and “experience.”
“Airbnb is going into the experience business, and we’re trying to do packages with them in the various places we’re opening up,” said Kevin Wallace, the Bangkok-based managing director of the Asia/Pacific for Dream Hotel Group. “We’re working with people like this because it’s part of building that business.
Thailand’s midyear hotel investment tops 10b Thai baht
Jones Lang LaSalle’s Hotels & Hospitality Group reported 10.7 billion Thai baht ($321.4 million) invested in the country’s hotel industry for the first half of the year, according to the news release. JLL predicts the country’s hotel industry will see 14 billion Thai baht ($420.5 million) invested by the end of the year.
"As a comparison, 2016's full-year investment volume was only THB 9.6 billion," said Mike Batchelor, head of investment sales Asia, JLL Hotels and Hospitality Group. "The robust investment activity recorded in the first half reflects investors' continued appetite for hospitality assets in Thailand and confidence in the long-term outlook for the country's tourism industry."
STR: Asia/Pacific hotel performance for Q2 2017
Hotels in the Asia Pacific region reported positive results in the three key performance metrics for the second quarter of 2017, according to data from STR, HNN’s parent company. Occupancy grew 3.1% year over year to 70.1% and average daily rate increased 0.9% to $97.39, leading to a 4.1% jump in revenue per available room to $68.24.
Vietnam reported strong numbers for the quarter. Occupancy grew 9.1% to 70.6% while ADR grew 4.2% to 2,777,499.59 Vietnamese dong ($122.18), giving RevPAR a 13.7% boost to 1,961,341.99 Vietnamese dong ($86.28).
STR: Asia/Pacific hotel pipeline for June 2017
STR’s June 2017 Pipeline Report for the Asia Pacific region shows 612,210 rooms in 2,767 hotel projects under contract, according to a news release, representing a 6.2% year-over-year increase. The region reported 270,976 rooms in 1,183 projects in construction in June.
The upscale segment reported the largest number of rooms under contract with 158,312 rooms, representing a 5.8% year-over-year increase, and in construction with 69,246 rooms, a 3.7% increase.
Deals and developments
- ONYX Hospitality Group opened the 172-room Amari Galle in Sri Lanka.
- AccorHotels will open the dual-branded Novotel & ibis Melbourne Little Lonsdale Street in late 2018.
- Marriott International opened its first Courtyard by Marriott in Hunan Province China: the 260-room Courtyard Changsha South.
- Pentahotels will open its first Thai property, the 157-room Pentahotel Bangkok, Ploenchit, will open in 2020.
- Sofitel Hotels & Resorts opened its first property in Foshan, China: the 325-room Sofitel Foshan Hotel.
- InterContinental Hotels Group will open its 289-room Hotel Indigo Bali Seminyak Beach later this year.
- Vienna House has entered a partnership with Thailand-based management company Absolute Hotel Services Group to expand each of its brands across Europe and Asia.
Compiled by Bryan Wroten.